In the CAPM, the risk to a stock's return that is not attributable to the fluctuations in the overall stock market is referred to as

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The CAPM differentiates between two types of risk: systematic risk and idiosyncratic risk. Systematic risk is the risk that is inherent in an entire market or asset class, and it cannot be diversified away. Idiosyncratic risk, on the other hand, is the risk that is specific to an individual stock or company, and it can be mitigated through diversification.

In the CAPM, the Risk to a Stock's Return That